In this piece, we discuss the 8 Most Undervalued Cloud Stocks to Buy According to Analysts.
Last month, Reuters reported that Wall Street is navigating disruption amid concerns about artificial intelligence. This led to a widespread selloff across software equities, which quickly spread to several sectors perceived as susceptible to AI-driven disruption. Investor sentiment worsened after a series of AI model enhancements and product launches, with analysts observing a prevailing “sell first, think later” mentality in the markets.
Surprisingly, the S&P 500 Software & Services index has experienced a decline of over $2 trillion in value since its peak in October, with nearly half of these losses occurring within just two weeks due to expectations that emerging AI technologies may disrupt conventional subscription and enterprise software frameworks.
Separately, on February 9, Reuters reported that the software industry’s decline was a significant reversal from its post-pandemic robustness, with the industry lagging the broader S&P 500 by roughly 24 percentage points over three months (as of the time of original reporting), approaching historically unusual levels. The selloff, partially propelled by emerging AI capabilities, has prompted essential inquiries into the sustainability of software business models and earnings growth.
Despite volatility and significant declines among prominent companies, such dislocations have historically aligned with periods that either precede additional downturns or offer attractive entry points for contrarian investors.
With this background in mind, we discuss below the most undervalued cloud stocks to buy according to analysts.
Methodology
To curate our list of the 8 most undervalued cloud stocks, we relied on a screener to shortlist companies with significant cloud exposure. Next, we filtered out stocks trading at a price-to-earnings multiple under 15x and a market capitalization of over $2 billion. Finally, we selected stocks with over 20% upside potential. These stocks are popular among analysts and are ranked based on their upside potential. Importantly, we limited our selection to companies that have recently reported noteworthy developments likely to impact investor sentiment.
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8. Adobe Inc. (NASDAQ:ADBE)
Adobe Inc. (NASDAQ:ADBE) earns a place in our list of the 8 most undervalued cloud stocks to buy according to analysts.
As of March 20, 2026, Adobe Inc. boasts a consensus price target of $310.00, implying a potential upside of 24.21%. With 50% of analysts covering the stock maintaining bullish ratings, overall analyst sentiment remains constructive.
However, on March 19, 2026, investor sentiment turned slightly cautious toward Adobe after the UK’s Competition and Markets Authority (CMA) initiated an inquiry into the company’s early cancellation costs, Reuters reported. This inquiry was initiated to determine whether the company’s practices related to programs such as Photoshop, Illustrator, and Premiere were deceptive or unfair. Following Adobe Inc.’s (NASDAQ:ADBE) recent $150 million U.S. settlement over similar allegations, the CMA is assessing whether customers received clear and timely information about these costs. Adobe states that it has not only made the company’s cancellation procedures clearer but has also simplified them in recent years.
The regulatory update was preceded by Citi’s note on March 16, 2026, where the firm maintained a ‘’Neutral” rating on Adobe Inc., while lowering the price target to $278 from $315. This follows the company’s fiscal Q1 results, which exceeded expectations and featured an in-line Q2 outlook. The analyst identified uncertainty around the CEO succession amid a critical period in Adobe’s AI strategy as a significant factor driving skepticism.
Adobe Inc. offers digital media, marketing, and publishing solutions that facilitate content creation, customer experience management, and the provision of legacy services for global businesses. The company was founded by Charles M. Geschke and John E. Warnock.
7. Zoom Communications, Inc. (NASDAQ:ZM)
Zoom Communications, Inc. (NASDAQ:ZM) ranks on our list of the 8 most undervalued cloud stocks to buy according to analysts.
As of March 20, 2026, analysts remain constructive toward Zoom Communications, Inc., with 56% of analysts covering the stock maintaining bullish ratings. The consensus price target of $97.50 implies an upside potential of 25.14%. The stock remains on analysts’ radar as it accelerates its AI strategy.
Revisiting Zoom Communications, Inc., Needham & Company reaffirmed a “Buy” rating on the stock with a price target of $100.00 on March 13, 2026. This indicates substantial potential for stock appreciation relative to its current trading level of $76.61.
The investment firm highlighted that investor concerns are predominantly focused on Zoom Communications, Inc.’s ability to capitalize on AI investments, although it contends that Zoom’s growth potential remains undervalued. Products like ZVA 3.0 and Custom AI Companion 3.0 were cited as major drivers, with the firm also adding that the current sell-off, which followed lower-than-anticipated FY 2027 free cash flow, offers investors an attractive entry point.
Meanwhile, on March 10, 2026, Zoom Communications, Inc. unveiled the expansion of its enterprise agentic AI platform, incorporating workflow orchestration across Zoom Workplace, Zoom Phone, and Zoom CX. The development supports the automation of tasks across different systems directly from chats, removing common inefficiencies experienced by companies.
Zoom Communications, Inc. is a cloud-based communications and collaboration platform operating worldwide, including the Americas, Asia Pacific, and EMEA, providing video, voice, and chat solutions for organizations. Its headquarters are in San Jose, California.
6. DocuSign, Inc. (NASDAQ:DOCU)
DocuSign, Inc. (NASDAQ:DOCU) earns a place on our list of the 8 most undervalued cloud stocks to buy according to analysts.
As of March 18, 2026, analysts have taken a cautious approach toward DocuSign, Inc., with firms making adjustments to their price forecasts following strong quarterly results.
Amid industry challenges and declining valuations, the company’s Q4 results offered some reassurance; however, they did not significantly alter analyst perspectives.
RBC Capital Markets analysts reduced the firm’s price target for DocuSign, Inc. from $70 to $55, while keeping a “Sector Perform” rating. It cited improvements in the dollar net retention rate and initial progress on the Intelligent Agreement Management (IAM) platform, although it remains cautious about enterprise adoption. The firm added that its price target reduction reflects multiple headwinds across its peers.
Similarly, on the same day, Morgan Stanley analyst Josh Baer lowered the price target on DocuSign, Inc. to $69.00 from $90.00, maintaining a “Equal Weight” rating. The firm cited restricted margin expansion and a stagnant 102% dollar-based net retention rate as limiting factors for potential growth. While the company reported solid results that beat analyst expectations, the investment firm noted that the improvement was only a small margin.
DocuSign, Inc. offers cloud-based electronic signature and agreement solutions that facilitate secure document workflows, automation, and transaction management. Established in 2003, it is based in San Francisco, California.
5. BlackLine, Inc. (NASDAQ:BL)
BlackLine, Inc. (NASDAQ:BL) earns a place in our list of the 8 most undervalued cloud stocks to buy according to analysts.
As of March 20, 2026, roughly 44% of analysts covering BlackLine, Inc. remain bullish, while 50% of them remain cautious. Despite the divided sentiment, the consensus price target of $50 implies a 28.29% upside. However, the company’s agentic AI plans are expected to drive analyst confidence upward.
On March 18, 2026, BMO Capital reduced its price target for BlackLine, Inc. from $52 to $44 and maintained a “Market Perform” rating on the shares following the company’s investor presentation, which shed light on its AI and agentic product plan. The analyst tells investors in a research note that BlackLine is well-positioned to offer specialized agentic tools today and fully automated agentic processes in the future. BMO stated that the company has some agents in production, and more are under development, with the impact expected to become more visible as the year progresses.
BlackLine, Inc. announced a $100 million increase to its share repurchase program on March 13, 2026, bringing the total to $500 million. The company has so far repurchased 5.3 million shares valued at $270.1 million.
BlackLine, Inc. offers a cloud-based software platform that automates and manages financial closing and accounting procedures. It operates through the United States and International segments. Founded by Therese Tucker in May 2001, the company is headquartered in Woodland Hills, CA.
4. Salesforce, Inc. (NASDAQ:CRM)
Salesforce, Inc. (NASDAQ:CRM) earns a place in our list of the 8 most undervalued cloud stocks to buy according to analysts.
As of March 20, 2026, 75% of analysts covering the stock retain “Buy” ratings for Salesforce, Inc., with a consensus price target of $255.00, suggesting a 29.34% upside potential. Meanwhile, analyst sentiment is supported by recent insider activity and new AI solutions.
Salesforce, Inc. disclosed in a regulatory filing on March 19, 2026, that director David Kirk purchased stock on March 18 for about $0.5 million, bolstering investor optimism in the company. The development was followed by a 1.5% increase in the share price to $299.44 in after-hours trading.
In a separate development, Salesforce, Inc. introduced the Agentforce Contact Center on March 10, 2026. This AI-powered solution integrates voice, CRM data, digital channels, and AI agents into a single platform. Through AI-to-human interactions, real-time data visibility, and automated customer assistance across channels, the platform is expected to help organizations save operational costs and increase service efficiency.
Salesforce, Inc. creates cloud-based software for customer relationship management, providing solutions across sales, service, marketing, commerce, and collaboration, as well as many industries, along with training, support, and consulting services.
3. Workday, Inc. (NASDAQ:WDAY)
Workday, Inc. (NASDAQ:WDAY) earns a place in our list of the 8 most undervalued cloud stocks to buy according to analysts.
As of March 20, 2026, 60% of analysts covering the stock retain bullish ratings for Workday, Inc., with a consensus price target of $180, indicating a 32.45% upside potential.
On March 17, 2026, Workday, Inc. revealed in a press release that Sana, a new AI-powered platform designed to automate enterprise workflows in HR and finance, is now available globally. Along with Sana for Workday, a conversational AI interface, and Sana Enterprise, which integrates with applications such as Gmail, Microsoft Outlook, Salesforce, and Slack, the release also included the Sana Self-Service Agent, which boasts over 300 skills across areas like pay, time, and absence.
Workday, Inc. added that the platform has been built to maintain compliance and enterprise-grade security. The platform achieves this by allowing users to carry out tasks, find information, and automate workflows within current systems. Sana is currently being utilized by customers worldwide to manage routine HR and finance functions, thereby enhancing efficiency and reducing support duties. According to Workday, Sana is integrated directly into its core platform, enabling organizations to use unified data and AI-driven automation across business processes to improve decision-making and expedite operations.
Workday, Inc. offers cloud-based enterprise applications for finance and human resources. These applications are designed to help organizations manage their workforce, financial operations, and analytics through integrated, data-driven solutions that are specifically engineered for the education, government, and business sectors.
2. Freshworks Inc. (NASDAQ:FRSH)
Freshworks Inc. (NASDAQ:FRSH) ranks among the 8 most undervalued cloud stocks to buy according to analysts.
As of March 20, 2026, Freshworks Inc. boasts constructive analyst sentiment, with 50% of analysts holding a ‘Buy’ recommendation and with a consensus price target of $11.00 indicating a 33.66% upside potential. The sentiment persists despite the fact that shares have fallen over 37% in the last six months, slightly underperforming the broader software applications industry, which faced a decline of roughly 30% during the same period.
To streamline its global sales organization, Freshworks Inc. announced a leadership change on March 5, 2026, appointing Ian Tickle as Chief Revenue Officer effective immediately. With this move, the company unified its sales organization under a single leader.
Tickle’s role in achieving strong results over the previous five consecutive quarters was highlighted by CEO Dennis Woodside. Furthermore, Mika Yamamoto, Chief Integrated Customer Growth Officer, will step down as part of the leadership change.
Changes in Freshworks Inc.’s (NASDAQ:FRSH) strategic leadership highlight an effort to improve execution and spur growth amid industry headwinds.
Meanwhile, in February, Freshworks Inc. released its results, which showed profitability, record free cash flow, increased FY 2026 sales estimate, and reaffirmed guidance. The company also announced a $400 million share repurchase plan.
Freshworks Inc. provides SaaS solutions, including Freshdesk, Freshservice, Freshsales, Freshmarketer, and Freshteam. Established in 2010, the company is based in San Mateo, California.
1. Atlassian Corporation (NASDAQ:TEAM)
Atlassian Corporation (NASDAQ:TEAM) earns a spot on our list of the 8 most undervalued cloud stocks to buy according to analysts.
As of March 20, 2026, analyst sentiment toward the company remains bullish. Roughly 80% of analysts covering the stock maintain bullish ratings on Atlassian Corporation, with a consensus price target of $150.00, indicating a 101.07% upside.
As the company transitions toward artificial intelligence and enterprise sales, Atlassian Corporation plans to lay off approximately 1,600 employees. The figure is approximately 10% of the company’s workforce, according to a Reuters report published on March 11, 2026. As a result of the layoffs and office space reductions, the company anticipates restructuring costs ranging from $225 million to $236 million.
Following this announcement, Atlassian Corporation shares rose by almost 2% during extended trading. This is an indication of investor optimism toward improved efficiency that will come with this decision.
CEO Mike Cannon-Brookes, while noting that AI is transforming workforce requirements, emphasized changes required in the skill set rather than simply removing workers.
The majority of job cuts will occur in North America (40%), followed by Australia (30%), and India (16%). The initiative is scheduled for completion by the fourth quarter, coinciding with the departure of CTO Rajeev Rajan on March 31.
Analysts see the action as a sign of a larger industry revolution, with companies using AI to enhance operations and increase profits.
On this occasion, DA Davidson’s analyst Gil Luria commented,
“Software companies such as Atlassian have an opportunity to make their business more efficient by adopting AI tools, especially within product development. By reorganizing that way, they can reduce the resources necessary to deliver their current business and grow more profitably.”
Atlassian Corporation offers software for collaboration and productivity, including Jira, Confluence, Jira Service Management, and Loom. Established in October 2002, it is based in San Francisco, California.
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